Session 01 Pre Study MKTN
Session 01 Pre Study MKTN
PRE-STUDY
RESEARCH OBJECTIVE
DEFINITION OF RESEARCH
When you say that you are undertaking a research study to find answers to a question, you
are implying that the process;
is being undertaken within a framework of a set of philosophies ( approaches);
1.
2. uses procedures, methods and techniques that have been tested for their validity and
reliability;
is designed to be unbiased and objective .
3.
Philosophies mean approaches e.g. qualitative, quantitative and the academic discipline in
which you have been trained.
Validity means that correct procedures have been applied to find answers to a question.
Reliability refers to the quality of a measurement procedure that provides repeatability and
accuracy.
Unbiased and objective means that you have taken each step in an unbiased manner and
drawn each conclusion to the best of your ability and without introducing your own vested
interest. (Bias is a deliberate attempt to either conceal or highlight something).
Adherence to the three criteria mentioned above enables the process to be called
research.
However, the degree to which these criteria are expected to be fulfilled varies from
discipline to discipline and so the meaning of research differs from one academic discipline
to another.
The difference between research and non-research activity is, in the way we find answers:
the process must meet certain requirements to be called research. We can identify these
requirements by examining some definitions of research.
The word research is composed of two syllables, re and search.
-
Together they form a noun describing a careful, systematic, patient study and investigation
in some field of knowledge, undertaken to establish facts or principles.
Research is a structured enquiry that utilizes acceptable scientific methodology to solve
problems and create new knowledge that is generally applicable.
Scientific methods consist of systematic observation, classification and interpretation of
data. Although we engage in such process in our daily life, the difference between our
casual day- to-day generalization and the conclusions usually recognized as scientific
method lies in the degree of formality, rigorousness, verifiability and general validity of
latter.
CHARACTERISTICS OF RESEARCH:
Research is a process of collecting, analyzing and interpreting information to answer
questions. But to qualify as research, the process must have certain characteristics: it must,
as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and
critical. Controlled- in real life there are many factors that affect an outcome. The concept of
control implies that, in exploring causality in relation to two variables (factors), you set up
your study in a way that minimizes the effects of other factors affecting the relationship.
This can be achieved to a large extent in the physical sciences (cookery, bakery), as most of
the research is done in a laboratory. However, in the social sciences (Hospitality and
Tourism) it is extremely difficult as research is carried out on issues related to human beings
living in society, where such controls are not possible. Therefore in Hospitality and Tourism,
as you cannot control external factors, you attempt to quantify their impact.
-Rigorous-you must be scrupulous in ensuring that the procedures followed to find answers
to questions are relevant, appropriate and justified. Again, the degree of rigor varies
markedly between the physical and social sciences and within the social sciences.
-Systematic-this implies that the procedure adopted to undertake an investigation follow a
certain logical sequence. The different steps cannot be taken in a haphazard way. Some
procedures must follow others.
-Valid and verifiable-this concept implies that whatever you conclude on the basis of your
findings is correct and can be verified by you and others.
-Empirical-this means that any conclusions drawn are based upon hard evidence gathered
from information collected from real life experiences or observations.
-Critical-critical scrutiny of the procedures used and the methods employed is crucial to a
research enquiry. The process of investigation must be foolproof and free from drawbacks.
The process adopted and the procedures used must be able to withstand critical scrutiny.
For a process to be called research, it is imperative that it has the above characteristics.
TYPES OF RESEARCH
Research can be classified from three perspectives:
1. application of research study
2. objectives in undertaking the research
3. inquiry mode employed
Application:
From the point of view of application, there are two broad categories of research:
-
Applied research.
Pure research involves developing and testing theories and hypotheses that are
intellectually challenging to the researcher but may or may not have practical application at
the present time or in the future. The knowledge produced through pure research is sought
in order to add to the existing body of research methods.
Applied research is done to solve specific, practical questions; for policy formulation,
administration and understanding of a phenomenon. It can be exploratory, but is usually
descriptive. It is almost always done on the basis of basic research. Applied research can be
carried out by academic or industrial institutions. Often, an academic institution such as a
university will have a specific applied research program funded by an industrial partner
interested in that program.
Objectives:
From the viewpoint of objectives, a research can be classified as
-Descriptive
-Correlational
-Explanatory
-Exploratory
Descriptive research attempts to describe systematically a situation, problem, phenomenon,
service or program, or provides information about , say, living condition of a community, or
describes attitudes towards an issue.
Correlational research attempts to discover or establish the existence of a relationship/
interdependence between two or more aspects of a situation.
Explanatory research attempts to clarify why and how there is a relationship between two
or more aspects of a situation or phenomenon.
Exploratory research is undertaken to explore an area where little is known or to investigate
the possibilities of undertaking a particular research study (feasibility study / pilot study).
In practice most studies are a combination of the first three categories.
Inquiry Mode:
From the process adopted to find answer to research questions the two approaches are:
- Structured approach
- Unstructured approach
Structured approach:
The structured approach to inquiry is usually classified as quantitative research. Here
everything that forms the research process- objectives, design, sample, and the questions
that you plan to ask of respondents- is predetermined.
It is more appropriate to determine the extent of a problem, issue or phenomenon by
quantifying the variation.
e.g. how many people have a particular problem? How many people hold a particular
attitude?
Unstructured approach:
The unstructured approach to inquiry is usually classified as qualitative research.
This approach allows flexibility in all aspects of the research process.
It is more appropriate to explore the nature of a problem, issue or phenomenon without
quantifying it.
Main objective is to describe the variation in a phenomenon, situation or attitude. e,g,
description of an observed situation, the historical enumeration of events, an account of
different opinions different people have about an issue, description of working condition in
a particular industry.
Both approaches have their place in research. Both have their strengths and weaknesses.
In many studies you have to combine both qualitative and quantitative approaches.
For example, suppose you have to find the types of cuisine / accommodation available in a
city and the extent of their popularity.
Types of cuisine is the qualitative aspect of the study as finding out about them entails
description of the culture and cuisine
The extent of their popularity is the quantitative aspect as it involves estimating the number
of people who visit restaurant serving such cuisine and calculating the other indicators that
reflect the extent of popularity.
SOCIAL RESEARCH
Social research refers to research conducted by social scientists. Social research methods
may be divided into two broad categories:
Quantitative designs approach social phenomena through quantifiable evidence, and
often rely on statistical analysis of many cases (or across intentionally designed
treatments in an experiment) to create valid and reliable general claims
Qualitative designs emphasize understanding of social phenomena through direct
observation, communication with participants, or analysis of texts, and may stress
contextual and subjective accuracy over generality
Social scientists employ a range of methods in order to analyse a vast breadth of social
phenomena; from census survey data derived from millions of individuals, to the in-depth
analysis of a single agents' social experiences; from monitoring what is happening on
contemporary streets, to the investigation of ancient historical documents. The methods
rooted in classical sociology and statistics have formed the basis for research in other
disciplines, such as political science, media studies, and market research.
Methodology:
Social scientists are divided into camps of support for particular research techniques. These
disputes relate to the historical core of social theory (positivism and anti-positivism;
structure and agency). While very different in many aspects, both qualitative and
quantitative approaches involve a systematic interaction between theory and data. The
choice of method often depends largely on what the researcher intends to investigate. For
example, a researcher concerned with drawing a statistical generalization across an entire
population may administer a survey questionnaire to a representative sample population.
By contrast, a researcher who seeks full contextual understanding of an individual' social
actions may choose ethnographic participant observation or open-ended interviews. Studies
will commonly combine, or 'triangulate', quantitative and qualitative methods as part of a
'multi-strategy' design. For instance, a quantitative study may be performed to gain
statistical patterns or a target sample, and then combined with a qualitative interview to
determine the play of agency.
An extreme form of ethnographic participant observation is practiced when a group of social
scientists (1) build and occupy an experimental community, (2) observe and record their
own behaviors, (3) experimentally test possible solutions to their personal and social
problems, (4) deliberately adopt experimentally validated solutions, and (5) publish reports
about the evolution of their culture.
Sampling:
Typically a population is very large, making a census or a complete enumeration of all the
values in that population infeasible. A 'sample' thus forms a manageable subset of a
population. In positivist research, statistics derived from a sample are analysed in order to
draw inferences regarding the population as a whole. The process of collecting information
from a sample is referred to as 'sampling'. Sampling methods may be either 'random'
(random sampling, systematic sampling, stratified sampling, cluster sampling) or nonrandom/non-probability (convenience sampling, purposive sampling, snowball sampling).
The most common reason for sampling is to obtain information about a population.
Sampling is quicker and cheaper than a complete census of a population
Methodological assumptions
Social research is based on logic and empirical observations. Charles C. Ragin writes in his
Constructing Social Research book that "Social research involved the interaction between
ideas and evidence. Ideas help social researchers make sense of evidence, and researchers
use evidence to extend, revise and test ideas". Social research thus attempts to create or
validate theories through data collection and data analysis, and its goal is exploration,
description and explanation. It should never lead or be mistaken with philosophy or belief.
Social research aims to find social patterns of regularity in social life and usually deals with
social groups (aggregates of individuals), not individuals themselves (although science of
psychology is an exception here). Research can also be divided into pure research and
applied research. Pure research has no application on real life, whereas applied research
attempts to influence the real world.
There are no laws in social science that parallel the laws in the natural science. A law in
social science is a universal generalization about a class of facts. A fact is an observed
phenomenon, and observation means it has been seen, heard or otherwise experienced by
researcher. A theory is a systematic explanation for the observations that relate to a
particular aspect of social life. Concepts are the basic building blocks of theory and are
abstract elements representing classes of phenomena. Axioms or postulates are basic
assertions assumed to be true. Propositions are conclusions drawn about the relationships
among concepts, based on analysis of axioms. Hypotheses are specified expectations about
empirical reality which are derived from propositions. Social research involves testing these
hypotheses to see if they are true.
Social research involves creating a theory, operationalization (measurement of variables)
and observation (actual collection of data to test hypothesized relationship). Social theories
are written in the language of variables, in other words, theories describe logical
relationships between variables. Variables are logical sets of attributes, with people being
the 'carriers' of those variables (for example, gender can be a variable with two attributes:
male and female). Variables are also divided into independent variables (data) that
influences the dependent variables (which scientists are trying to explain). For example, in a
study of how different dosages of a drug are related to the severity of symptoms of a
disease, a measure of the severity of the symptoms of the disease is a dependent variable
and the administration of the drug in specified doses is the independent variable.
Researchers will compare the different values of the dependent variable (severity of the
symptoms) and attempt to draw conclusions.
Rules for social research:
Although there are no laws in social science that parallel laws in the natural sciences, there
is consensus about fundamental rules or principles about how to do social research. When
social scientists speak of good research the focus is on how the research is done
whether the research is methodologically sound rather than on whether the results of the
research are consistent with personal biases or preconceptions. Glenn Firebaugh
summarizes the principles for good research in his book Seven Rules for Social Research. The
first rule is that There should be the possibility of surprise in social research. As Firebaugh
(p. 1) elaborates: "Rule 1 is intended to warn that you dont want to be blinded by
preconceived ideas so that you fail to look for contrary evidence, or you fail to recognize
contrary evidence when you do encounter it, or you recognize contrary evidence but
suppress it and refuse to accept your findings for what they appear to say."
In addition, good research will look for differences that make a difference (Rule 2) and
build in reality checks (Rule 3). Rule 4 advises researchers to replicate, that is, to see if
identical analyses yield similar results for different samples of people (p. 90). The next two
rules urge researchers to compare like with like (Rule 5) and to study change (Rule 6);
these two rules are especially important when researchers want to estimate the effect of
one variable on another (e.g. how much does college education actually matter for wages?).
The final rule, Let method be the servant, not the master, reminds researchers that
methods are the means, not the end, of social research; it is critical from the outset to fit
the research design to the research issue, rather than the other way around
Types of explanations
Explanations in social theories can be idiographic or nomothetic. An idiographic approach to
an explanation is one where the scientists seek to exhaust the idiosyncratic causes of a
particular condition or event, i.e. by trying to provide all possible explanations of a particular
case. Nomothetic explanations tend to be more general with scientists trying to identify a
few causal factors that impact a wide class of conditions or events. For example, when
dealing with the problem of how people choose a job, idiographic explanation would be to
list all possible reasons why a given person (or group) chooses a given job, while nomothetic
explanation would try to find factors that determine why job applicants in general choose a
given job.
Social research organisations
Center for the Advanced Study of Communities and Information, USA
CREA- UB Centre of Research in Theories and Practices that Overcome Inequalities
Economic and Social Research Council, United Kingdom (Research Funding Council)
IBI Partners, Asia Pacific
Institute for Public Policy and Social Research, USA
Institute for Social Research, Germany
Mada al-Carmel, The Arab Center for Applied Social Research, Haifa, Israel
Mass-Observation, United Kingdom
Matrix Knowledge Group, United Kingdom
Melbourne Institute of Applied Economic and Social Research, Australia
National Centre for Social Research, United Kingdom
National Opinion Research Center, USA
New School for Social Research, New York City
The Social Research Unit, Dartington, United Kingdom
Securities Research
Securities research is a discipline within the financial services industry. Securities research
professionals are known most generally as "analysts," "research analysts," or "securities
analysts;" all the foregoing terms are synonymous. Securities analysts are commonly divided
between the two basic kinds of securities: equity analysts (researching stocks and their
issuers) and fixed income analysts (researching bond issuers). However, there are some
analysts who cover all of the securities of a particular issuer, stocks and bonds alike.
Securities analysts are usually further subdivided by industry specialization (or sectors) -among the industries with the most analyst coverage are biotechnology, financial services,
energy, and computer hardware, software and services. Fixed income analysts are also
often subdivided by asset classamong the fixed income asset classes with the most analyst
coverage are convertible bonds, high yield bonds (see high-yield debt), and distressed bonds
(see distressed securities). (Although technically not securities, syndicated bank loans
typically fall within the domain of fixed income analysts, and are covered, as if they were
bonds, by reference to the industry of their borrowers or asset class in which their credit
quality would place them.)
In the broadest terms, securities analysts seek to develop, and thereafter communicate to
investors, insights regarding the value, risk, and volatility of a covered security, and thus
assist investors to decide whether to buy, hold, sell, sell short, or simply avoid the security in
question or derivative securities (see: derivative). To gather the information required to do
so, securities analysts review periodic financial disclosures (such as made by United Stateslisted issuers to the S.E.C.) of the issuer and other relevant companies, read industry news
and use trading history and industry information databases, interview managers and
customers of the issuer, and (sometimes) perform their own primary research.
Securities research falls into two broad categories: that provided by investment banks and
that provided by independent equity research boutiques. The former group offer research
as part of a broad set of financial services including broking and corporate finance.
Independent equity research has largely sprung into existence as a result of scandals such as
Enron, Lernout & Hauspie and Worldcom where investment banks wrote positive research
despite deteriorating fundamentals or fraudulent management.
Major Investment Banks
Barclay's Capital
Deutsche Bank
Citi
Credit Suisse
Goldman Sachs
JPMorgan Chase
Morgan Stanley
Royal Bank of Canada
UBS
Career path:
Entrance into the profession, which is generally very well paid and prestigious, is highly
competitive. Those who enter the profession at the junior level, typically have an
undergraduate degree from a leading college or university and one to a few years of
experience in some other discipline of finance or (lacking such experience) an MBA or other
relevant advanced degree. Those who enter the field in a junior capacity, can progress to a
senior capacity in a fairly brief period of time (two to four years) if they prove themselves
talented; often such advancement is greatly aided by earning a Chartered Financial Analyst
charter (which requires passage of three examinations). Many securities analysts have
directly entered the profession at a more senior level; such persons typically have an MBA
or other relevant advanced degree and a number of years of progressively responsible
experience either in another finance profession, or in the industry which they will be
covering as an analyst.
MARKET RESEARCH
Market research is any organized effort to gather information about markets or customers.
It is a very important component of business strategy. The term is commonly interchanged
with marketing research; however, expert practitioners may wish to draw a distinction, in
that marketing research is concerned specifically about marketing processes, while market
research is concerned specifically with markets.
Market Research is the key factor to get advantage over competitors. Market research
provides important information to identify and analyze the market need, market size and
competition.
Market research,as defined by the ICC/ESOMAR International Code on Market and Social
Research, includes social and opinion research, [and] is the systematic gathering and
interpretation of information about individuals or organizations using statistical and
analytical methods and techniques of the applied social sciences to gain insight or support
decision making
Market research is for discovering what people want, need, or believe. It can also involve
discovering how they act. Once that research is completed, it can be used to determine how
to market your product.
Questionnaires and focus group discussion surveys are some of the instruments for market
research.
Market information
Through Market information one can know the prices of the different commodities in the
market, as well as the supply and demand situation. Information about the markets can be
obtained from different sources, varieties and formats, as well as the sources and varieties
that have to be obtained to make the business work.
Market segmentation
Market segmentation is the division of the market or population into subgroups with similar
motivations. It is widely used for segmenting on geographic differences, personality
differences, demographic differences, technographic differences, use of product
differences, psychographic differences and gender differences. For B2B segmentation
firmographics is commonly used.
Market trends
Market trends are the upward or downward movement of a market, during a period of
time. The market size is more difficult to estimate if one is starting with something
completely new. In this case, you will have to derive the figures from the number of
potential customers, or customer segments.
Besides information about the target market, one also needs information about one's
competitors, customers, products, etc. Lastly, you need to measure marketing effectiveness.
A few techniques are:
Customer analysis
Choice Modelling
Competitor analysis
Risk analysis
Product research
Advertising the research
Marketing mix modelling
An example of a B2C transaction would be a person buying a pair of shoes from a retailer.
The transactions that led to the shoes being available for purchase, that is the purchase of
the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the
retailer would be considered (B2B) transactions
While the term e-commerce refers to all online transactions, B2C stands for "business-toconsumer" and applies to any business or organization that sells its products or services to
consumers over the Internet for its own use. When most people think of B2C e-commerce,
they think of Amazon, the online bookseller that launched its site in 1995 and quickly took
on the nation's major retailers. In addition to online retailers, B2C has grown to include
services such as online banking, travel services, online auctions, health information and real
estate sites. Peer-to-peer sites such as Craigslist also fall under the B2C category.
B2C e-commerce went through some tough times, particularly after the technology-heavy
Nasdaq crumbled in 2000. In the ensuing dotcom carnage, hundreds of e-commerce sites
shut their virtual doors and some experts predicted years of struggle for online retail
ventures. Since then, however, shoppers have continued to flock to the web in increasing
numbers. In fact, North American consumers adopted e-commerce so much that despite
growing fears about identity theft, they spent $172 billion shopping online in 2005, up from
$38.8 billion in 2000.
By 2010, consumers are expected to spend $329 billion each year online, according to
Forrester Research. Whats more, the percentage of U.S. households shopping online is
expected to grow from 39 percent this year to 48 percent in 2010.
In October 2010, an extension of B2C, B21 was coined. Whilst B2C includes all manners of a
business marketing or selling to consumers, B21 is specifically targeted towards an
individual. B21 requires specific Personalization for that individual. B21 requires Insight in
order to create the personalized experience
Quantitative research refers to the systematic empirical investigation of quantitative
properties and phenomena and their relationships. The objective of quantitative research is
to develop and employ mathematical models, theories and/or hypotheses pertaining to
phenomena. The process of measurement is central to quantitative research because it
provides the fundamental connection between empirical observation and mathematical
expression of quantitative relationships.
Quantitative research is used widely in social sciences such as psychology, sociology,
anthropology, and political science. Research in mathematical sciences such as physics is
also 'quantitative' by definition, though this use of the term differs in context. In the social
sciences, the term relates to empirical methods, originating in both philosophical positivism
and the history of statistics, which contrast qualitative research methods.
example, qualitative methods ask mostly open-ended questions that are not necessarily
worded in exactly the same way with each participant. With open-ended questions,
participants are free to respond in their own words, and these responses tend to be more
complex than simply yes or no. In addition, with qualitative methods, the relationship
between the researcher and the participant is often less formal than in quantitative
research. Participants have the opportunity to respond more elaborately and in greater
detail than is typically the case with quantitative methods. In turn, researchers have the
opportunity to respond immediately to what participants say by tailoring subsequent
questions to information the participant has provided. It is important to note, however, that
there is a range of flexibility among methods used in both quantitative and qualitative
research and that flexibility is not an indication of how scientifically rigorous a method is.
Rather, the degree of flexibility reflects the kind of understanding of the problem that is
being pursued using the method.
EXPLORATORY RESEARCH is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only with
extreme caution. Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypotheses
users/non-users of the product and/or focus group interviews with farmers and/or
distributors.
Exploratory research is intended to help researchers formulate a problem in such a way that
it can be researched and suggest testable hypotheses.
Descriptive research: As the name suggests, descriptive research is concerned with
describing market characteristics and/or marketing mix characteristics. Typically, a
descriptive study specifies the number and size of market segments, the alternative ways in
which products are currently distributed, listing and comparison of the attributes and
features of competitive products, etc.
This type of study can involve the description of the extent of association between variables.
For example, the researcher may observe that there is an association between the
geographical location of consumers and their tendency to consume red meat. Note that the
researcher is able to describe the relationship rather than explain it. Nonetheless if the
relationship between the two is fairly stable this descriptive information may be sufficient
for the purposes of prediction. The researcher may, for example, be able to predict how fast
the per capita consumption of red meat is likely to rise over a given time period.
The principal difference between exploratory and descriptive research is that, in the case of
the latter, specific research questions have been formulated before the research is
undertaken. When descriptive research is conducted the researcher must already know a
great deal about the research problem, perhaps because of a prior exploratory study, and is
in a position to clearly define what he/she wants to measure and how to do it.
Causal research: Causal research deals with the "why" questions. That is, there are
occasions when the researcher will want to know why a change in one variable brings about
a change in another. If he/she can understand the causes of the effects observed then our
ability to predict and control such events is increased.
In summary then there are three distinct types of marketing research study: exploratory,
descriptive and causal. In some cases, a research programme will be of one kind or another,
but in other instances these three typologies will represent phases within a single marketing
research investigation.